Best Buy 2014 Annual Report Download - page 77

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72
goodwill attributable to the Best Buy Europe reporting unit, representing $1.2 billion as of January 24, 2012, had been fully
impaired. The impairment loss is recorded in gain (loss) from discontinued operations within our Consolidated Statements of
Earnings in fiscal 2012.
Acceleration of Intervening Event
The results of Best Buy Europe were recorded on a two-month lag in fiscal 2012. However, as described in Note 1, Summary of
Significant Accounting Policies, the Mobile buy-out in January 2012 constituted a significant intervening event. Consequently,
the recording of all accounting impacts arising from the Mobile buy-out, including the goodwill impairment, were accelerated
and recorded in the fourth quarter of fiscal 2012 due to their significance to our consolidated financial statements.
4. Discontinued Operations
Discontinued operations comprise the following:
Domestic Segment
Napster – During the third quarter of fiscal 2012, we sold certain assets comprising the domestic operations of Napster, Inc. to
Rhapsody International and ceased operations in the U.S. Napster's operations comprised digital media download and streaming
services in the U.S. In consideration for the sale of these assets, Best Buy received a minority investment in Rhapsody
International. We do not exercise significant influence over Rhapsody International.
mindSHIFT – During the fourth quarter of fiscal 2014, we completed the sale of mindSHIFT to Ricoh Americas Corporation, at
which time we recorded an $18 million pre-tax loss.
International Segment
Best Buy China – During the fourth quarter of fiscal 2011, we announced the restructuring of our eight large-format Best Buy
branded stores in China. The closure of Best Buy branded stores was completed in the first quarter of fiscal 2012.
Best Buy Turkey – During the fourth quarter of fiscal 2011, we announced the closure of our two large-format Best Buy branded
stores in Turkey. The exit activities were completed during the second quarter of fiscal 2012, at which time we recorded a $4
million pre-tax gain on the sale of certain assets related to the stores.
Best Buy Europe – During the third quarter of fiscal 2012, we announced the closure of our 11 large-format Best Buy branded
stores in the U.K. We completed the exit activities associated with these stores during the fourth quarter of fiscal 2012.
During the fourth quarter of fiscal 2012, Best Buy Europe sold its retail business in Belgium, consisting of 82 small-format The
Phone House stores, to Belgacom S.A. As a result of the sale, a pre-tax gain of $5 million was recorded in fiscal 2012.
During the second quarter of fiscal 2014, we completed the sale of our 50% ownership interest in Best Buy Europe to CPW in
return for the following consideration upon closing: net cash of £341 million ($526 million); £80 million ($123 million) of
ordinary shares of CPW; £25 million ($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2014; and £25 million
($39 million), plus 2.5% interest, to be paid by CPW on June 26, 2015. We subsequently sold the ordinary shares of CPW for
$123 million on July 3, 2013.